Anyone know????

[magyar123]

Anyone know what bank runs the Aspire Visa cards?? Payments and correspondence addresses indicate Atlanta. Could it be that this is/was a bank that recently went belly-up? Or didn't beg hard enough for bailout money?
ASpire just sent me letter informing me that they are discontinuing their Visa program. They advised me that I will no longer be allowed to charge, and that they lowered my credit limit from $3750 to $1536.
This really sucks as my balance with them now is $1435. Which increases my utilization % to over 90 % - a major hit on my credit score - if they report the new credit limit to the CRAs..
What are my chances of actually having the $3750 limit stay on the CRs. I fully intend to pay the monthly minimum payments?

[StartingOver08]

Right now the CLD (Credit Line Decreases) are everywhere. The odds of Aspire, or any creditor, restoring your previous credit limit are slim to none. The decreases are because of the credit crunch the banks are going through (along with the rest of us). They are even reducing credit lines if you have a zero balance, have a high credit score, and not used the card in a long time. Don't be surprised if the credit limit follows you down as you pay down the card. The cc companies are limiting their exposure to risk

[Flamingo]

Many folks are getting their credit limits and credit lines (i.e., HELOCs) lowered by their lenders because the lenders are afraid of folks relying on credit to get by and then not paying and, as you can see from this board with the numerous postings, filing for bankruptcy after running up the credit cards and lines of credit. You can't blame them, it's their money. Aspire has not been in the news as having issues/problems and since you have an account/card, you would have heard something further as to that. If they were taken over, your account doesn't change immediately as to name, etc. and stays open and gets switched over as others also do. What occurred with you is that you just found out what many creditors are doing now; lowering limits and credit lines. That has been going on for some time now.

[magyar123]

I am well aware of banks cutting limits - but in their letter Aspire/their bank said that they are discontinuing their Visa program - which is alltogether different.
I will write them a letter asking them to keep on reporting (to the CRAs) my limit as being $3750 even though they lowered my limit to $1536, that furthermore I will keep on making the regularly scheduled monthly minimum payments.
And finally I can threaten them with bankruptcy - that if they report my limit as $1536 to the CRAs - which negatively impacts my credit score.

[Flamingo]

Hopefully that will work for you but legally they can change your limit at any time which is stated in the contract you signed with them and that would be the new limit they can report on your credit reports as it would be correct. You should have been aware that could take place. Threatening them with bankruptcy cannot change a contractual agreement as to your credit limit changing. They are discontinuing their VISA program because it has either become unprofitable for them, they too are cutting back as many businesses are to cut costs or so many people are defaulting on their bills/accounts that they have no choice.

Best of luck to you Magyar. Continue those payments and try to send more than the minimum to pay it down plus sending more helps to up your score.

[magyar123]

Don't really care that they''re lowering the limit - all I really care about is them not changing the new limit information to the CRAs as the balance vs. limit would take a significant hit against my score.
My threat therefore would be: If you change the limit to read as $1536 as compared to $3750 to the credit reporting agencies I will file bankruptcy on this account. Would you rather be out my current balance and not receiving any more payments from me?

[Flamingo]

Don't really care that they''re lowering the limit - all I really care about is them not changing the new limit information to the CRAs as the balance vs. limit would take a significant hit against my score.
My threat therefore would be: If you change the limit to read as $1536 as compared to $3750 to the credit reporting agencies I will file bankruptcy on this account. Would you rather be out my current balance and not receiving any more payments from me?

I don't blame you for being angry as it changes your status and I am sure a lot of folks are hot that events like this are taking place now. If you think advising them filing BK will keep them from posting your new lowered limit on your credit reports by all means send the letter. But don't be surprised if it doesn't work. Since there has been a change to your available credit all around, you will need to paydown the balance more to about 1/3 of what you owe them to keep your credit score up (it's always to your advantage not to carry a balance of more than 1/3 of your available credit limit). Also, you can put a statement into your credit reports that Aspire lowered your available credit to just above your balance due and you are afraid that would be looked upon unfavorably by future creditors looking to extend credit. It may or may not help.

Also, didn't you within the past few years file Chapter 7?

[magyar123]

Yes I did file in 2004. But never on them (Aspire). Actually they were among the first ones who issued me a cc with a $1250 limit about 6 months after I was discharged, and between then and sometime in May or June of this year they steadily increased my limit to $3750 - because I "behaved" - always paid on time, most of the time more than the required minimum.

[Flamingo]

Yes I did file in 2004. But never on them (Aspire). Actually they were among the first ones who issued me a cc with a $1250 limit about 6 months after I was discharged, and between then and sometime in May or June of this year they steadily increased my limit to $3750 - because I "behaved" - always paid on time, most of the time more than the required minimum.

You are doing the right thing. If you have other cards, remember this can occur with them also so try to get the balances down if you can and be prepared. You may want to pay down that Aspire and switch to another better card since it appears you are doing fine credit wise. Aspire is / was one of those banks out there that would come after you just out of BK and offer credit but had enormous fees associated with it. It's best to pay that off as best as you can and get yourself a better card. Since you are 4 years beyond BK with good credit it could be a possibility now to switch that balance to another, lower interest card. My best to you!!!!